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Fargo Voice of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two y ears in advance. Cash received from subscribers is credited to san account called Magazine Subscriptions Received in Advance. On December 31, 2009, the end of the company's fiscal year, the balance of this account is $840,000. Expiration of subscriptions revenue is as follows:
During 2009 ................$175,000
During 2010 ................ 415,000
During 2011 ................ 250,000
Prepare the adjusting entry in journal form for December 31, 2009.
Prepare in general journal form the workpaper entries that would be made int he preparation of a consolidated statements workpaper.
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Frederic Chopin Corporation is preparing its December 31, 2008, balance sheet. The following items may be reported as either a current or long-term liability.
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